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The Southern California eBusiness Forum will have their next meeting on January 11, 2006. The meeting topic is RFID and promises to discuss real applications.

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January 9, 2006 Volume III

IN THIS ISSUE:

Retail EDI News 

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VAN Migrations
The retailers have nearly completed their migrations away from the once QRS IBM/Advantis networks. Some of the recent activity from the second half of 2005 included: 

Dillard's now utilizes two VANs, GXS and Inovis.

Belks moved their trading partners to Inovis.

Kmart moved their traffic to the Sterling Information Broker Network.


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New EDI Documents and Requirements

  Federated Department Stores has posted their May Company to Macy's Store Listings showing systems and DC conversions dates of 4/30/2006, 5/28/2006, and 7/2/2006.  Be sure to watch for additional information on FDSNET as these dates get closer.

Kohl's is enhancing their Advance Shipment Notification (ASN) system to include a new retransmission process for incorrect ASN's. The enhancement includes new information requirements effective March 15, 2006. Detailed information can be found on the Kohl's website.

JCPenney has revised their UCC128 Shipping Container Labels and is asking suppliers to comply by February 1, 2006. Additional information here. JCPenney also has a new Load Management Center effective January 9, 2006 and vendor's using the 753/754 transactions should review the associated change to the 754. Finally, JCPenney also has a new requirement for vendors to implement the EDI 820 or use their Supplier Internet site for remittance advice by April 1, 2006.


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Retail Mergers and Acquisitions

 

It seems that the merger and acquisition rush of 2004 - 2005 has slowed. During 2005 Kmart Holding Corp and Sears, Roebuck and Company combined to form Sears Holdings Corp.  Federated Department Stores purchased May Department Stores.  This year may bring some downsizing for several major retailers.

Albertsons - The rumors of a possible sale were quieted as Larry Johnston, the CEO of Albertsons, announced that the company is no longer for sale.  However, he did say that the company will continue to discuss selling off underperforming assets.

Mervyn's is retreating from some geographic locations, with store closures in progress now.

Federated Department Stores will be transforming many of their acquired May Company properties into Macy's stores. Watch for further news this year as they announce plans for dealing with multiple stores in close proximity.

For additional news and information, visit the EDI Center website.

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EDI Standards News 

ASC X12 (ANSI X12) released their first set of W3C-Compliant XML Schemas Based on Content Inspired Component Architecture (CICA). CICA is ASC X12's framework for developing international data exchange messaging formats using reusable syntax-neutral components. You might ask, does this mean we are going to see big changes in the retail industry? Not in the near future, the CICA development is currently focused on the Insurance and Transporation industries. 

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Technology News 

Radio Frequency Identification, RFID, continues to grow in usage and applications, some of which are creating a buzz in the news this week.  A Washington state entrepeneur and his girlfriend have installed chips into their hands to give them access to their apartment and computers without keys or passwords. Pfizer is tagging the bottles of a popular prescription medication in an effort to prevent counterfeiting.

Wal-Mart continues to lead in adoption of RFID in the US retail industry. Wal-Mart implemented RFID with their top 100 suppliers last January, 2005. This was pallet and case level RFID tags as a replacement for bar codes.  Wal-Mart is bringing on another 200 suppliers this month.

Meanwhile privacy issues are of concern as the industry makes plans for the next logical steps - implementation at the item level. The idea that the clothes you wear could have an embedded tag that can be used to track your every move is drawing great concern from consumer watchdog groups.

The RFID tags continue to go down in price which helps the economic justification of RFID implementations.  However, the technology is still evolving and there are always costs and risks associated with being an early adopter.  For the small to medium size business, we recommend that you proceed cautiously.

Additional information on RFID applications can be found here.

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